Money News

Motley Fool: Unemployment estimates are scaring people into saving

Wed 24th Jun 2009

Independent financial advice firm Motley Fool has stated that recent predictions relating to unemployment rising further before it falls is scaring people into saving cash.

According to the firm's director David Kuo, people are "rightly concerned" about estimated unemployment rates and are taking the opportunity to save money in the event that redundancy happens to them within the next year.

They are also making attempts to reduce their debts, Mr Kuo added.

"What they are trying to do now is to either repay the debt that they have, so that the burden is not as great when they are unemployed," he furthered.

The latest figures from the Office for National Statistics show that unemployment in the UK rose by 1.9 per cent in the three months to April, compared to the same period in 2008. It currently stands at 2.26 million.